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AVTX Stock Analysis - Avalo Therapeutics, Inc. AI Rating

AVTX Nasdaq Pharmaceutical Preparations DE CIK: 0001534120
Recently Updated • Analysis: Mar 20, 2026 • SEC Data: 2025-09-30
AI Rating
STRONG SELL
92% Confidence

📊 AVTX Key Takeaways

Revenue: $0.0
Net Margin: N/A
Free Cash Flow: $-37.3M
Current Ratio: 14.28x
Debt/Equity: 0.16x
EPS: $-5.47
AI Rating: STRONG SELL with 92% confidence

Investment Thesis

Avalo Therapeutics is a pre-revenue pharmaceutical company with severe cash burn and deteriorating financial condition. The company has depleted its revenue to zero with a 77.1% YoY decline, burning $37.2M in operating cash flow annually against only $27.0M in cash reserves, indicating a critical liquidity runway of less than 9 months. With persistent operating losses of $53.2M, negative returns on equity and assets exceeding -50%, and substantial long-term debt, the company faces imminent financing pressure or potential insolvency.

AVTX Strengths

  • + Strong current ratio of 14.28x suggests adequate short-term liquidity relative to current liabilities
  • + Moderate debt-to-equity ratio of 0.16x indicates conservative leverage relative to equity base
  • + Positive insider activity with 9 Form 4 filings in last 90 days may suggest management confidence

AVTX Risks

  • ! Critical cash runway of approximately 8 months at current burn rate with only $27.0M cash against $37.2M annual operating cash burn
  • ! Complete revenue collapse to $0 (77.1% YoY decline) indicating failed commercialization or pipeline setbacks
  • ! Persistent operating losses of $53.2M and net losses of $64.5M with negative ROE of -70.5% and ROA of -51.6% demonstrating severe unprofitability
  • ! High interest coverage ratio of -83.8x indicates inability to service debt from operations
  • ! Unsustainable business model requiring immediate capital raise or strategic alternatives to avoid dilution or bankruptcy

Key Metrics to Watch

AVTX Financial Metrics

Revenue
$0.0
Net Income
$-64.5M
EPS (Diluted)
$-5.47
Free Cash Flow
$-37.3M
Total Assets
$125.1M
Cash Position
$27.0M

💡 AI Analyst Insight

Strong liquidity with a 14.28x current ratio provides a solid financial cushion.

AVTX Profitability Ratios

Gross Margin N/A
Operating Margin N/A
Net Margin N/A
ROE -70.5%
ROA -51.6%
FCF Margin N/A

AVTX vs Healthcare Sector

How Avalo Therapeutics, Inc. compares to Healthcare sector averages

Net Margin
AVTX 0.0%
vs
Sector Avg 12.0%
AVTX Sector
ROE
AVTX -70.5%
vs
Sector Avg 15.0%
AVTX Sector
Current Ratio
AVTX 14.3x
vs
Sector Avg 2.0x
AVTX Sector
Debt/Equity
AVTX 0.2x
vs
Sector Avg 0.6x
AVTX Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

AVTX Balance Sheet & Liquidity

Current Ratio
14.28x
Quick Ratio
14.28x
Debt/Equity
0.16x
Debt/Assets
26.8%
Interest Coverage
-83.78x
Long-term Debt
$14.3M

AVTX 5-Year Financial Trend

AVTX 5-year financial data: Year 2020: Revenue $6.8M, Net Income -$16.1M, EPS N/A. Year 2021: Revenue $6.7M, Net Income -$63.5M, EPS N/A. Year 2022: Revenue $18.1M, Net Income -$84.4M, EPS $-4.43. Year 2023: Revenue $18.1M, Net Income -$41.7M, EPS $-1,063.00. Year 2024: Revenue $1.9M, Net Income -$31.5M, EPS $-113.58.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Avalo Therapeutics, Inc.'s revenue has declined by 71% over the 5-year period, indicating business contraction. The most recent EPS of $-113.58 indicates the company is currently unprofitable.

AVTX Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
N/A
Free cash flow / Revenue

AVTX Quarterly Performance

Quarterly financial performance data for Avalo Therapeutics, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 N/A $210.0K $-2.19
Q3 2024 $236.0K $210.0K $-2.83
Q2 2024 N/A -$8.2M $-14.07
Q1 2024 N/A -$10.0M $-141.00
Q3 2023 $236.0K $3.2M $-0.11
Q2 2023 $643.0K -$8.2M $-0.59
Q1 2023 $475.0K -$10.0M $-0.85
Q3 2022 $1.4M $3.2M N/A

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

AVTX Capital Allocation

Operating Cash Flow
-$37.2M
Cash generated from operations
Capital Expenditures
$95.0K
Investment in assets
Dividends
None
No dividend program

AVTX SEC Filings

Access official SEC EDGAR filings for Avalo Therapeutics, Inc. (CIK: 0001534120)

📋 Recent SEC Filings

Date Form Document Action
Mar 18, 2026 4 xslF345X06/form4-03182026_080310.xml View →
Mar 2, 2026 4 xslF345X05/form4-03022026_090313.xml View →
Mar 2, 2026 4 xslF345X05/form4-03022026_090329.xml View →
Mar 2, 2026 4 xslF345X05/form4-03022026_090303.xml View →
Mar 2, 2026 4 xslF345X05/form4-03022026_090334.xml View →

Frequently Asked Questions about AVTX

What is the AI rating for AVTX?

Avalo Therapeutics, Inc. (AVTX) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.

What are AVTX's key strengths?

Strong current ratio of 14.28x suggests adequate short-term liquidity relative to current liabilities. Moderate debt-to-equity ratio of 0.16x indicates conservative leverage relative to equity base.

What are the risks of investing in AVTX?

Critical cash runway of approximately 8 months at current burn rate with only $27.0M cash against $37.2M annual operating cash burn. Complete revenue collapse to $0 (77.1% YoY decline) indicating failed commercialization or pipeline setbacks.

What is AVTX's revenue and growth?

Avalo Therapeutics, Inc. reported revenue of $0.0.

Does AVTX pay dividends?

Avalo Therapeutics, Inc. does not currently pay dividends.

Where can I find AVTX SEC filings?

Official SEC filings for Avalo Therapeutics, Inc. (CIK: 0001534120) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is AVTX's EPS?

Avalo Therapeutics, Inc. has a diluted EPS of $-5.47.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 20, 2026 | Data as of: 2025-09-30 | Powered by Claude AI